MR.JUSTICE AKIL KURESHI J- Tax appeal is admitted for consideration of following substantial question of law :
Whether the Appellate Tribunal was right in treating business income of Rs. 2,31,17,992/- as Short Term Capital Gain and Rs. 11,27,984/- as Long Term Capital Gain and Rs. 11,12,073/- as Long Term Capital Loss?
2. We notice that the revenue has also suggested one more question which reads as under:
Whether the Appellate Tribunal was right in facts and circumstances in deleting the disallowances of interest of Rs. 1,11,22,812/- confirmed by the CIT(A), pertaining to A.Y 2005-06?
3. With respect to this question, we notice that the CIT(A) confirms with the Assessing Officer that interest expenditure of Rs. 1.11 crores had to be disallowed. However, the Tribunal noted that the advances were made by the assessee to one Kanak Castor Products Private Limited. Kanak Castor was declared as the highest bidder for purchase of assets of a company in liquidation by the Gujarat High Court. To facilitate the purchase, the assessee had also purchased 4.79 crores shares out of 5 crores shares of the company i.e. Kanak Castor. The Tribunal, therefore, found that such advances were made for the purpose of business. We do not find any error in the view of the Tribunal. This question is, therefore, not considered.